Smarter F&B purchasing strategies for hoteliers

A volatile economy and rapidly shifting guest expectations have made purchasing decisions for hotels more challenging than ever. When procuring for food-and-beverage venues, hoteliers need to not only keep up with emerging trends but make sure that they are getting the best value for every penny spent. 

Smart Partnerships

Partnering with a procurement company can be a good way to maximize costs and keep on top of emerging trends. “At this time of year, we all hear a lot about what’s trending,” said Phil Hummel, VP client services, hospitality and lodging at procurement company Entegra. “Leveraging trends is always great, but making a trend profitable requires some know-how, researching what guests want and smartly adapting these desires into your core offering.” The culinary team at Entegra tests limited-time offers and seasonal specials, he continued. “If they work, we can confidently recommend that operators put them on their menus. This saves a lot of effort, time and budget on rolling out dishes that may provide little in return.”

When working with a group purchasing organization, Hummel said not taking the partner’s advice on the supply chain can be a “huge, missed opportunity” as prices change and new products come online. “A GPO partner can work with you on things like product cuttings and looking at new innovations,” he said. “If you always stick to buying what you know, the products you’re getting might not be as efficient, they might not be the best price [and] they might not be as trendy, for instance.” 

Jeremiah Bacon, culinary purchasing & executive chef at The Indigo Road Hospitality Group, agreed that GPOs can be “great” partners and noted that the company uses two of them. The partnerships, however, require regular communication—“not only [about] what we’re looking for, but who we are [and] what our needs are.” When restaurants in the company’s portfolio are ready to update their menus, the GPO representatives will reach out to each chef to discuss next steps, already aware of what products from what purveyors are available. 

At the same time, Gabriel Perez, chief operating officer – lodging at The Indigo Road Hospitality Group, acknowledged that creating a “unique experience” in a bar or restaurant can be difficult when purchasing the same products in bulk. To that end, he said, the Indigo Road team also seeks out local partners and vendors for specific properties. “They are what brings the difference and the local flavor to not only our dishes, but the environment itself,” he said. 

Greg Griffie, SVP of F&B operations at Davidson Restaurant Group, suggested seeking out suppliers with a unique “story”—or suppliers from underrepresented communities, whose workforce may be from minority communities or have special needs. 

Griffie emphasized the need of each party to treat the other with respect. “Ensure that you set clear expectations with each new vendor,” he advised. “These expectations should include delivery windows [and] product specifications.” Griffie also noted that both the operation and the supplier will inevitably make mistakes at some point. “Having a strong partnership can lead to fast resolution and problem solving,” he said. 

Looking Ahead

Griffie expects vending machines—including units that serve hot meals—to become increasingly popular in hotels. These units can serve “unique offerings that the current team may not be able to execute well,” he said, and can provide meals at all hours “with low to no labor.” For example, if the hotel’s restaurant closes at 11pm, guests arriving at midnight can still get a bowl of ramen to tide them over until breakfast. 

Hummel also sees value in F&B options that do not require full-service staffing, such as grab-and-go kiosks. Guests perceive these options as “value-adds,” he said, but they are “relatively light lifts” for a business. “Incorporating premium coffee, for instance, can make a huge impact on customer satisfaction.”

Perhaps most importantly, Perez said, hoteliers will need to find a balance between making a food-and-beverage venue simultaneously part of the hotel and independent. “It has to have its own identity zone, branding, its own theme—yet remain cohesive with the overall environment of the hotel.” Bacon agreed, noting that consumers now want an “experience” at a restaurant. “There’s a lot of genuineness behind that—behind the dishes, the service—that resonates very well with the market right now.” To that end, Perez said, “you need to invest in branding.” Hoteliers also will need to maintain the relationships they build with their suppliers, he added, especially as prices continue to climb. “Nothing replaces personal relationships,” he said. “Personal relationships work.”